Acoma, Incorporated, has determined a standard direct materials cost per unit of $8.00 (2 feet x $4.00 per foot). Last month, Acoma purchased and used 4,590 feet of direct materials, for which it paid $17,901. The company produced and sold 2,160 units during the month. Required: Calculate the direct materials price, quantity, and spending variances. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places. Direct Materials Price Variance Direct Materials Quantity Variance Direct Materials Spending Variance $ (459) F F F

Acoma, Incorporated, has determined a standard direct materials cost per unit of $8.00 (2 feet x $4.00 per foot). Last month, Acoma purchased and used 4,590 feet of direct materials, for which it paid $17,901. The company produced and sold 2,160 units during the month. Required: Calculate the direct materials price, quantity, and spending variances. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places. Direct Materials Price Variance Direct Materials Quantity Variance Direct Materials Spending Variance $ (459) F F F

Name: Acoma, Incorporated, has determined a standard direct materials cost
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Acoma, Incorporated, has determined a standard direct materials cost per unit of $8.00 (2 feet × $4.00 per foot). Last month, Acomapurchased and used 4,590 feet of direct materials, for which it paid $17,901. The company produced and sold 2,160 unit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Consider the following data for Martin Manufacturing during the month of November:…

A: Answer) Calculation of Material Price variance Material price variance = (Standard price per pound…

Q: Lihue, Inc., applies fixed overhead at the rate of $2.20 per unit. Budgeted fixed overhead was…

A: Cost controlling is very important for an entity, the entity uses standard costing to control costs…

Q: During March, Ayayai, Inc. purchases and uses 11,100 pounds of materials costing $46,065 to make…

A: Variance is the result of the difference between the budgeted value and actual results. It is used…

Q: How can I tell if it is favorable or unfavorable? The standard cost of Product B includes 2…

A: Standard costing means where standard is set for various cost element and actual cost is then…

Q: Can you answer this question?

A: To calculate the materials quantity variance, you can use the following formula: Materials Quantity…

Q: Please need Correct Answer!!!

A: Step 1: Introduction to Direct Materials Price and Quantity Variances:The direct materials price and…

Q: How would i solve this problem

A: Standard costs are usually associated with a manufacturing company's costs of direct material,…

Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…

A: SOLUTION- GIVEN, VARIABLE OVERHEAD RATE = $2 FIXED OVERHEAD RATE = $10 NORMAL LEVEL OF PRODUCTION =…

Q: Acoma, Incorporated, has determined a standard direct materials cost per unit of $6.80 (2 feet x…

A: Lets understand the basics.DIRECT MATERIALS COST VARIANCEDirect materials cost variance is the…

Q: Can you show me how this is done? The standard cost of Product B includes 2 units of direct…

A: Direct material:- Direct materials are the raw material that used up in the production of product.…

Q: Oriole, Inc. uses a standard cost system in which direct materials are carried at standard cost.…

A: Working NoteFor Material VariancesStandard Quantity =19,600 unitsActual Quantity = 19,600…

Q: A company reports the following for one of its products. Direct materials standard (3 pounds @ $2…

A: MATERIAL PRICE VARIANCEDirect Materials Price Variance is the difference between the actual and…

Q: Ruby Company produces a chair for which the standard specifies 7 yards of material per unit. The…

A: Direct costs are the expenses that are directly used for the production of goods and services for…

Q: Vaughn Company has determined that the standard cost to manufacture its product includes 2 units of…

A: The variance is the difference between the standard and actual cost data. The variance can be…

Q: For the current period, Juan Company's standard cost of direct materials is $170,000. The direct…

A: A variance is a difference between a planned amount and the actual amount incurred. Variance can be…

Q: Ipad Man Inc. has provided the following standard direct labor cost for its product: Standard…

A: Standard rate of labor = P15 per direct labor hour Actual rate of labor = P36,000 / 1800 = P20 per…

Q: Please give answer

A: To calculate the direct materials price and quantity variances for Thrope, Inc., we'll use the…

Q: Acoma, Inc., has determined a standard direct materials cost per unit of $6.20 (2 feet x $3.10 per…

A: The variants arise when the target performance deviates from what was budgeted, The variance is…

Q: Oriole, Inc. uses a standard cost system in which direct materials are carried at standard cost.…

A: First, we need to calculate the actual price per gallon. This can be done by dividing the total cost…

Q: The standard direct material cost per unit for Willis Group was $180 (= $45 per gallon x 4 gallons…

Q: A company planned to produce 7,500 units of its product Thunder during the month of April. The…

A: Standard costing is a management accounting technique that uses pre-determined standards to estimate…

Q: Last month, Brentwood Corporation purchased and used the same quantity of material in producing its…

A: Variance analysis is used to determine the difference between the actual performance and the budget…

Q: A company reports the following for one of its products. Direct materials standard (4 pounds @ $3…

A: Direct materials price variance=SP-AP×AQ Direct materials quantity variance=SQ-AQ×SP Direct…

Q: During March, Ayayai, Inc. purchases and uses 8,900 pounds of materials costing $36,045 to make…

A: Material Variance is the difference between standard material cost for actual production and actual…

Q: The standard cost of a gallon of paint manufactured by Through-the-Letters, Inc. includes 4 pounds…

A: Materials price variance = (Standard price - Actual price) x Actual quantity Materials quantity…

Q: During March, Monty, Inc. purchases and uses 9,800 pounds of materials costing $39,690 to make 4,500…

A: 1. Total Material Variance: It's the difference between the actual total material cost and the…

Q: Acoma, Incorporated, has determined a standard direct materials cost per unit of $8.20 (2 feet x…

A: Step 1: First, calculate the standard Price and Quantity and Actual Price and Quantity, Standard…

Q: Direct materials information Standard pounds per unit.... Standard price per pound..... Actual…

A: The technique of predicting costs incurred throughout the manufacturing process is known as standard…

Q: Rancho Cucamonga Inc. established the following direct materials and direct labor standards for its…

A: Formulae Used: Direct materials quantity variance=(Standard Price×Standard Quantity)-Standard…

Q: Ivanhoe Industries uses a standard cost system in which direct material is carried at standard cost.…

A: Direct material price variance is one of material cost variance being used in business. It means…

Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…

A: In budgeting as well as management accounting, variance analysis seems to be the examination of…

Q: Delmar Incorporated uses a standard cost system. Labor standards are 2.00 hours per widget at $15.10…

A: 1. Direct Labor Rate Variance: The difference between the actual labor cost per hour paid and the…

Q: The per-unit standards for direct materials are 2.4 pounds at $5.59 per pound. Last month, 3,900…

A: Either the efficiency of direct labor or the consumption of direct materials may account for the…

Q: Blue Devil Inc.’s direct labor cost information for April 2021 is as follows. Standard Costs:…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Ruby Company produces a chair for which the standard specifies 7 yards of material per unit. The…

A: The difference between an actual measured outcome and a basis, such as a budgeted sum, is known as a…

Q: Standard and actual costs for direct labor for the manufacture of 1,000 units of product were as…

A: Introduction: Variance analysis is the quantitative examination of the difference between actual and…

Q: Provide solution for this question

A: Given Data:Standard labor cost per unit of output: $48Standard labor hours allowed per unit of…

Q: Please fill in these charts

A: Answer (1) To compute the volume variance, we need to compare the actual activity level with the…

Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

Topic Video

Question

Acoma, Incorporated, has determined a standard direct materials cost per unit of $8.00 (2 feet × $4.00 per foot). Last month, Acoma
purchased and used 4,590 feet of direct materials, for which it paid $17,901. The company produced and sold 2,160 units during the
month.
Required:
Calculate the direct materials price, quantity, and spending variances.
Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero
variance). Round your intermediate calculations to 2 decimal places.
Direct Materials Price Variance
Direct Materials Quantity Variance
Direct Materials Spending Variance
$
(459) F
F
F

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Standard Quantity of Actual Output

VIEW

Step 3: Actual Rate

VIEW

Step 4: Direct Material Price Variance

VIEW

Step 5: Direct Quantity Variance

VIEW

Step 6: Direct Spending Variance

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 7 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The standard direct material cost per unit for Willis Group was $152 (= $38 per gallon × 4 gallons per unit). During the period, actual direct materials costs amounted to $2,020,690, materials used totaled 55,475 gallons, and 13,270 units were produced. Required: Compute the direct materials price and efficiency variances for the period. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.
Can you show me how this is done? How do I know if it is favorable or unfavorable? The standard cost of Product B includes 2 units of DM at $4 per unit. During June, 20,315 units of Dm were purchased and used at a cost of $3.6 per unit to produce 10000 units of Product B. Compute the variance requested below and indicate whether the variance is favorable or unfavorable, by indicating U or F. Place the letter by the number, DO NOT add a space. Example, if the variance is 100 unfavorable, enter 100U (DO NOT PUT 100 U) The Direct Materials Quantity variance is $ Selected Answer: 5,643 Correct Answer: 1,260 ± 2 (U)
Scarlett Company has a direct materials standard of 3 gallons of input at a standard price of $13.00 per gallon. During July, Scarlett Company purchased and used 7,470 gallons at an actual price of $12.60 to produce 2,050 units. What is the direct materials price variance?
Starts Inc. produces a product that require 3.50 standard hours per unit at a standard hourly rate of $17.00 per hour. Production of 7,500 units required 27,550 hours at an hourly rate of $16.00 per hour. What is the direct labor (a) rate variance, (b) time variance, and (c) total cost variance? (d) Perform the journal entries related to the variances.
please answer all with working please answer in text . answer all please please please 1. What is the materials price variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for none effect.) 2. What is the materials quantity variance for March? 3. If Preble had purchases 182,000kg of materials at $7.40 per kg and used 160,000kg in productions, what would be the materials price variance efficiency for March? 4. If Preble had purchases 182,000kg of materials at $7.40 per kg and used 160,000kg in productions, what would be the materials quantity variance efficiency for March? 5. What is the labour rate variance for March? 6. What is the labour efficiency for March?
(Algo) Calculating Direct Labor Cost Variances Paradise Corp. has determined a standard labor cost per unit of $14 (0.50 hour $28 per hour). Last month, Paradise incurred 954 direct labor hours for which it paid $22,896. The company produced and sold 2,050 units during the month. Calculate the direct labor rate, efficiency, and spending variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places.) Direct Labor Rate Variance Direct Labor Efficiency Variance Total Direct Labor Spending Variance F None
Vikram Bhai
Please answer both questions.
Sheffield Company's standard materials cost per unit of output is $8.20 (2.00 pounds x $4.10). During July, the company purchases and uses 2,700 pounds of materials costing $14,580 in making 1,500 units of finished product. Compute the total, price, and quantity materials variances. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 52.) Total materials variance $ Materials price variance Materials quantity variance $ %24 %24
Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The company’s cost accountant has gathered the following information needed to perform a variance analysis at the end of the month: Standard Cost Information Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5 per pound Quantity allowed per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100 pounds per unit Direct labor rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20.00 per hour Hours allowed per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 hours per unit Fixed overhead budgeted . . . . . . . . . . . . . . . . . . . . . . . . $12,000 per month Normal level of production . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200 units Variable overhead application rate . . . . . . . . . . . . . . . . . . . $ 2.00 per unit Fixed overhead application rate ($12,000 _ 1,200 units) . . . 10.00…
See attached image Required:Calculate Parker Plastic’s direct materials price and quantity variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
The standard cost of product B manufactured by Waterway Company includes 3 units of direct materials at $5.55 per unit. During June, the company purchases 29,000 units of direct materials at a cost of $5.22 per unit and uses 29,000 units of direct materials to produce 9,500 units of product B. Calculate the materials variance, and the price and quantity variances, assuming the purchase price is $5.72 and the quantity purchased and used is 28,000 units. Materials variance Materials price variance Materials quantity variance